(CALGARY, ALBERTA, CANADA) – Hines, the international real estate firm, announced today that along with a subsidiary of real estate funds managed by Oaktree Capital Management, L.P. (“Oaktree”), it has acquired First Tower, the 27-story Class B office building totaling 708,354 square feet situated in the Downtown East submarket of Calgary.
Located at 411 1st Street, the +15-connected office building provides efficient floorplates and unobstructed views to the Bow River and the east. First Tower is 51 percent leased to a roster of notable tenants including Encana, Telus and TransCanada.
Hines and Oaktree will pursue a significant capital upgrade program to reposition the building to a Class A standard including the redevelopment of key common areas of the asset, allowing Hines to offer tenants significant value for their rent and a meaningfully improved built environment in which to work.
In particular, a comprehensive redevelopment of the 34,000-square-foot +15-level will provide First Tower’s tenants with a highly differentiated amenity package and materially improve the activation and user experience of the building. The new space will include a tenant lounge/collaboration area; a café and food service area including the possibility for a differentiated food hall concept; an outdoor terrace; a state-of-the-art fitness and wellness center; and a modern, flexible conference facility.
First Tower is well served by transit and only two blocks south of the recently upgraded Riverwalk. In addition, the location will see continued improvement in the coming years as the neighboring East Village area continues to benefit from public infrastructure improvements and private developments.
Oaktree Managing Director Ambrose Fisher commented, “We are excited to acquire First Tower with our partner Hines, who has consistently demonstrated an ability to deliver on premier repositioning plans and provide tenants with the highest level of management and service.”
Hines Managing Director Syl Apps said, “We are pleased to acquire this office asset where we have the ability to provide a compelling value proposition to our tenants. As a firm, we believe in, and are committed to, the city of Calgary with First Tower being Hines’ second office acquisition during the recent energy downturn. We look forward to continuing to grow our downtown Calgary value-add office portfolio in the coming months and years.”
Oaktree is a leader among global investment managers specializing in alternative investments, with $100 billion in assets under management as of December 31, 2017. The firm emphasizes an opportunistic, value-oriented and risk-controlled approach to investments in distressed debt, corporate debt (including high yield debt and senior loans), control investing, convertible securities, real estate and listed equities. Headquartered in Los Angeles, the firm has over 900 employees and offices in 18 cities worldwide. For additional information, please visit Oaktree’s website at www.oaktreecapital.com.
Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 201 cities in 24 countries. Hines has approximately $111 billion of assets under management, including $60 billion for which Hines provides fiduciary investment management services, and $51 billion for which Hines provides third-party property-level services. The firm has 108 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,295 properties, totaling over 422 million square feet. The firm’s current property and asset management portfolio includes 506 properties, representing over 210 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.